Don’t look now … it’s almost tax time
Published 12:00 am Wednesday, January 19, 2000
The president of Mississippi’s Better Business Bureau issued tax advice and warnings for the state’s taxpayers this week.
Harold Palmer, president of the Mississippi Better Business Bureau recommends a national tax service for routine returns.
&uot;These chains maintain franchise offices all over the country, and their main advantage is convenience,&uot; Palmer said. &uot;During tax time, offices may be open nights, weekends, and on a drop-in, first-come, first-served basis.&uot;
Personal computer users may want to take advantage of the IRS e-file option, he said.
&uot;Using your PC, modem and tax preparation software that offers the IRS e-file option, you can prepare and electronically fire your tax return information from home,&uot; Palmer said.
One of the fastest options for tax returns, the IRS usually acknowledges receipt of the e-filed return within 48 hours.
For complex returns, Palmer recommends hiring an enrolled agent, certified public account (CPA) or tax attorney. With more training, these professionals can prepare the more complex return and defend it before an IRS audit.
Local certified public accountant Dennis Switzer, a partner with the firm of Switzer,&160;Hopkins and Mange also suggests using a copy of the previous year’s return as a template for gathering material for this year’s return.
&uot;When you’re getting information together, get out a copy of last year’s tax return,&uot; Switzer said. &uot;Go through and be sure if you have interest or dividends income last year, there’s a good chance you have it this year. If you have deductions or payments to organizations last years, there’s a good chance you’ll have deductionas this year.&uot;
The comparison of the two returns will help in making sure everything is together and complete, he said.
Also, Switzer wanred to beware anyone promising any kind of refund before they look at all of your tax information.
Palmer also offers several warnings when shopping for a tax preparation professional or service.
First, beware advertisements for a tax preparation service that guarantees your &uot;biggest refund&uot; without having seen your tax information.
&uot;Fees should be based on the complexity of the return, never on the size of the tax savings or refund,&uot; Palmer said.
Second, don’t be lured in by tax preparers who offer to pay an immediate tax refund.
&uot;Keep in mind that is is a loan, often accompanied by high interest rates,&uot; Palmer said.
Called a Refund Anticipation Loan, taxpayers should read all the fine print on the loan document.
Finally, regardless of who prepares the return, the responsibility for the information within in it is still the taxpayer’s, Palmer said.
&uot;Don’t sign the return unless you are certain it is accurate,&uot; he said.
Palmer also recommends seeking tax help when needed. The IRS has a toll free phone line for tax assistance at 1-800-TAX-1040 and a web site at http://www.irs.ustreas.gov.